Aramco partners with UAE-based NPCC, US firm for offshore fabrication yards

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Riyadh – The Saudi Arabian Oil Company (Aramco) has collaborated with the UAE’s National Petroleum Construction Company (NPCC) and the US-based McDermott International to establish two offshore fabrication yards in Ras Al Khair with a goal to serve the Kingdom, GCC, and broader markets.

The facilities are expected to start operating in the third quarter (Q3) of 2023, with the initial combined production capacity will likely hit 70,000 metric tonnes (MT) per year, according to a press release.

Aramco noted that setting up the new yards aims to boost the Kingdom’s annual offshore fabrication capacity by more than 200% from 30,000 MT to 100,000 MT, as they will fabricate and assemble offshore platforms, jackets, and structures for subsea pipelines.

Once fully operational, the yards should deliver up to 7,000 direct and indirect jobs, with a target Saudisation rate of 70%.

Commenting on the offshore yards, Aramco Senior Vice President of Technical Services, Ahmad Al Sa’adi, said: “They are expected to harness latest technologies, support localisation efforts, improve the supply chain, and contribute to the development of Saudi talent. In addition, they aim to contribute to economic diversification in the Kingdom.”

Meanwhile, Abdulkarim Al Ghamdi, Aramco Vice President of Project Management, noted: “NPCC and McDermott are long-term partners of Aramco and the establishment of these yards is another example of our collaborations and joint efforts to deliver more advanced offshore facilities.”

The yards will further localise the Kingdom’s maritime industry, by contributing to the country’s development as a centre of excellence for maritime engineering, equipment, material manufacturing, and fabrication.

In addition, they are expected to exploit the advanced infrastructure at Ras Al Khair, including Ras Al Khair Port and the King Salman International Complex for Maritime Industries and Services.